8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                        ---------------------------------

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15 (D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


       Date of Report (Date of earliest event reported): December 9, 2003


             FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS
             (Exact name of registrant as specified in its charter)

                                      Ohio
                 (State or Other Jurisdiction of Incorporation)

               001-06249                        34-6513657
       (Commission File Number)      (I.R.S. Employer Identification No.)

                                 125 Park Avenue
                               New York, NY 10017
          (Address of principal executive offices, including ZIP code)

                                 (212) 949-1373
              (Registrant's telephone number, including area code)

                                 Not Applicable
          (Former name or former address, if changed since last report)







ITEM 5. OTHER EVENTS AND REQUIRED FD DISCLOSURE

The Registrant announced that the Supreme Court of Arkansas had reversed a June
2002 trial court ruling that the zoning of a proposed mall site in Little Rock,
Arkansas had reverted from commercial to residential zoning in 1991. If
developed according to plan, the new mall would be in competition with Park
Plaza Mall, also located in Little Rock, Arkansas and owned by Registrant. The
full text of the release is attached hereto as Exhibit 99.1.



ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS, AND EXHIBITS

        99.1   Press Release, dated December 9, 2003, issued by First Union
               Real Estate Equity and Mortgage Investments.







                                   SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Date:    December 10, 2003


                                     FIRST UNION REAL ESTATE EQUITY AND
                                     MORTGAGE INVESTMENTS



                                     By:  /s/  Neil H. Koenig
                                          -------------------------------
                                          Name:  Neil H. Koenig
                                          Title: Interim Chief Financial Officer






                                  EXHIBIT LIST

 Exhibit
   No.                                 Description
- ---------                              -----------

  99.1         Press Release, dated December 9, 2003, issued by First Union
               Real Estate Equity and Mortgage Investments.

EX-99.1

                                                                   Exhibit 99.1

FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS
- -------------------------------------------------------------------------------

AT THE COMPANY
Neil H. Koenig
Interim Chief Financial Officer
(212) 949-1373

            FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS
         ANNOUNCES DEVELOPMENT IN ZONING SUIT AFFECTING PARK PLAZA MALL

FOR IMMEDIATE RELEASE - December 9, 2003 - First Union Real Estate Equity and
Mortgage Investments (NYSE:FUR) today announced that the Supreme Court of
Arkansas had reversed a June 2002 trial court ruling that the zoning of a
proposed mall site in Little Rock, Arkansas had reverted from commercial to
residential zoning in 1991. If developed according to plan, the new mall would
be in competition with Park Plaza Mall, also located in Little Rock and owned by
First Union. The developers of the proposed mall, Simon Property Group and
Dillard Department Stores, Inc., had appealed the decision of the trial court to
the Supreme Court of Arkansas. Dillard owns and operates two department stores
which anchor Park Plaza Mall.

The ruling of the Supreme Court of Arkansas, issued on December 4, 2003, found
that the complaint brought in the trial court was barred by the doctrine of
laches. The Supreme Court ruled that, by filing their action after the
developers of the property had purchased the property and incurred investment
costs with respect to the property, the adjacent landowners were barred from
pursuing their complaint.

Plaintiffs and defendants in the zoning challenge, including the city of Little
Rock, previously stipulated in the trial court that petitions for a city-wide
referendum on the Little Rock Board of Directors' approval of the development
plan for the proposed mall complied with the minimum requisite legal standards
for a referendum. The Arkansas Supreme Court expressly stated that the issue of
the legitimacy of the referendum was not affected by its ruling. In the event
that the sponsors of the referendum procedure cause it to go forward, the
referendum would likely proceed unless otherwise enjoined by a court of
competent jurisdiction.

The purpose of the referendum is to overturn the determination by the Board of
Directors of the City of Little Rock as respects the zoning for the proposed new
mall. If a majority of voters at the referendum fail to vote to overturn that
determination, that result could have a negative impact on Park Plaza Mall.

First Union is not aware of the plans of the developers with respect to the
pursuit of the new mall in light of the ruling of the Arkansas Supreme Court. It
is not possible to predict the ultimate



effect of the opinion of the Supreme Court of Arkansas on the development of the
new mall and, thus, the effect on the Park Plaza Mall. The operations of Park
Plaza Mall are currently unaffected by the ruling of the Arkansas Supreme Court.

                             -----------------------

Certain statements contained in this press release that are forward-looking are
based on current expectations that are subject to a number of uncertainties and
risks, and actual results may differ materially. The uncertainties and risks
include, but are not limited to, the risk that adverse judicial rulings, adverse
referendum results or other negative events will affect the ultimate outcome of
these matters resulting in possible impairment to the value of the Park Plaza
Mall. Further information about these matters and the risks generally with
respect to First Union can be found in First Union's Annual Report on Form 10-K
and Quarterly Reports on Form 10-Q filed with the Securities and Exchange
Commission.


First Union Real Estate Equity and Mortgage Investments is a NYSE-listed real
estate investment trust (REIT) headquartered in New York, New York.